Trump Plans National Security Investigation into Chinese Chips; Higher Tariffs on the Horizon

President Donald Trump stated during a Sunday announcement that smartphones and computers have a temporary reprieve from his administration's reciprocal tariffs on China and declared a national security investigation into the semiconductor sector.

Trump explained in a social media post that these electronics products are being shifted to other semiconductor tariffs classification. Our upcoming National Security Tariff Investigations will examine the semiconductor industry and all electronics supply chain elements.

The White House announced which products were excluded from steep reciprocal tariffs on Friday.

Trump's Commerce Secretary Howard Lutnick announced Sunday that critical technology products from China including semiconductors will be subject to new duties in the coming two months.

Technology firms including Apple and Dell Technologies viewed the removal of tariffs as beneficial but this exemption is likely to end soon.

The Wall Street market experienced significant volatility when Trump altered his tariff decisions last week causing Standard & Poor's 500 index to drop over 10% since his inauguration on January 20.

Lutnick stated that the new tariffs would feature a “special focus-type of tariff” on smartphones and computers as well as other electronics within the next month or two while introducing sector-specific tariffs for Chinese chips USA and pharmaceuticals. These duties operate independently from the reciprocal tariffs which recently increased Chinese import levies to 125%.

Lutnick told ABC's "This Week" that these products will be exempt from reciprocal tariffs but face semiconductor tariffs arriving in one to two months. National security products must be manufactured inside the United States.

China’s Ministry of Commerce stated that the bell around a tiger's neck can only be removed by the person who attached it.